One could split views of right , wrong, or maybe and theories of a new gift vs a transfer --but oversimplified:
1. The UTMA most likley says the person must ask for the funds --the custodian has no duty to rush to deliver them.
The custodian has no duty to rush to educate the person as to possible alternative views or options.
2. If you merely shut up and leave NH designation alone there is no penality to do so.
2.1 If a question arises before you cross any bridge you address it when you get to said bridge.
3. If college need based age is a big consideration --then you may want to think thru legitimate ways to get these funds
off the aid equation. They really do hurt big time!
If the child needs the funds "early," you as custodian have no problem to do that.
If the child is likley to go blow the funds you need to be very good about shuting up or supplying just the facts as
they apply to NH. I can think of ways to inhibt quick transfer and get assets off the aid equation but it requires a set
of steps that may or may not pass the smell test and quirks of local state law that has an imperfect mesh with
Federal law and the Federal rules keep changing so unless that is a need--lets not invite problems.....